How to become a millionaire

I came across this article online somewhere. Decent advice.

The Top 10 Steps To Becoming A Millionaire
By Dr Philip E. Humbert

1. Decide to be financially successful.

This is different than wishing, hoping, wanting or even desiring to be rich. Make a commitment that this is going to happen! Financial independence is not an accident or matter of luck, and it usually requires some inconvenience. Have you decided to achieve this goal?


2. Understand how money works.

Most of never studied finance or investing in school. Most of were never even taught to balance a checkbook! To master anything, you have to understand it. Read. Study what successful people do. Take classes.


3. Master your relationship with money.

Some of us spend for excitement, to show off, to prove we can. Some of us are addicted to spending, and some of us are just careless about it. Whatever your relationship with money, understand it and develop a relationship of respect, appreciation and gratitude. Use your money, rather than allowing it to run your life.


4. Set specific goals.

They should be challenging, but not unbelievable, just out of reach but not out of sight. Challenge yourself to be out of debt by a specific date. Make a commitment to saving an exact amount each month.


5. Develop a budget.

A budget is a set of dreams and aspirations. It's how you really, really want to use money to benefit your family and run your life. Budget to buy the things you really want, and to eliminate the "impulses", the toys that waste too much of our income. A budget is a map to your destination. Have one and use it!


6. Reduce spending.

Yes, this comes after making a budget, because when you begin getting control of your money (rather than the other way around) you have powerful new reasons to reduce expenses. Most self-made millionaires live far below their means! You should to.


7. Begin investing.

Most of us spend or speculate. Both are roads to disaster! Invest in things you understand. Invest cautiously, wisely, and regularly. The objective is not to "make a killing", but to get rich over time. Know and obey the distinction between gambling, and putting your money to work for you.


8. Increase assets.

Most people try to increase their income, and that's a mistake. Making more money means paying more taxes. It takes time and hard work. And, when wealth arrives in the form of cash, it's easier to spend. Millionaires buy stocks and buildings, they invest in assets that will make them rich – and that are hard to spend on a whim!


9. Reduce taxes.

Most Americans pay more in taxes than for food, clothing and shelter combined! It is your largest expense! The poor and middle class don't realize how much they pay because it's deducted from their pay check. The wealthy know there are legal and appropriate ways to shelter income, to invest in socially-responsible ways, and that the tax code encourages this. Learn the tax laws and use them for your benefit! (Yes, it's the most boring reading you'll ever do, and worth it!)


10. Use your wealth wisely.

Someone once said, "The reason most of us aren't rich is that we'd spend it all on ourselves." Give. Share. Help others. When you use money to make a difference, to have a positive impact, you get the chance to do more. Being greedy and selfish will not draw money to you. Investing in your community, will!

Opening a new brokerage account

I recently found out that if you open a new account with TD-Ameritrade[formerly TD Waterhouse, Ameritrade and Datek], with $2000 you get 15 free trades. You can do this even if you have an existing account[according to their customer support]. If you deposit $25,000 they'll give you 25 free trades plus $50. Also if an existing member referred you, they get $50 too!

If anyone wants a referral, let me know and I'll send you an email!

I also found out that the Indian Funds I mentioned in a previous post trade like Stocks [like the QQQs]. This is actually cheaper than buying mutual funds with TDAmeritrade! Plus there are no front or back-end loads to worry about.

Swanson's 33 Rules of Management

Thanks to Accidental Verbosity for this link on "CEOs say how you treat a waiter can predict a lot about character".

"Watch out for people who have a situational value system, who can turn the charm on and off depending on the status of the person they are interacting with," Swanson writes. "Be especially wary of those who are rude to people perceived to be in subordinate roles."

Here are Swanson's 33 Unwritten Rules of Management.[Well I guess they written now!]

1: Learn to say, "I don't know." If used when appropriate, it will be used often.
2: It is easier to get into something than to get out of it.
3: If you are not criticized, you may not be doing much.
4: Look for what is missing. Many know how to improve what's there; few can see what isn't there.
5: Presentation rule: When something appears on a slide presentation, assume the world knows about it and deal with it accordingly.
6: Work for a boss to whom you can tell it like it is. Remember, you can't pick your family, but you can pick your boss.
7: Constantly review developments to make sure that the actual benefits are what they were supposed to be. Avoid Newton's Law.
8: However menial and trivial your early assignments may appear, give them your best effort.
9: Persistence or tenacity is the disposition to persevere in spite of difficulties, discouragement or indifference. Don't be known as a good starter but a poor finisher!
10: In doing your project, don't wait for others; go after them and make sure it gets done.
11: Confirm the instructions you give others, and their commitments, in writing. Don't assume it will get done.
12: Don't be timid: Speak up, express yourself and promote your ideas.
13: Practice shows that those who speak the most knowingly and confidently often end up with the assignment to get the job done.
14: Strive for brevity and clarity in oral and written reports.
15: Be extremely careful in the accuracy of your statements.
16: Don't overlook the fact that you are working for a boss. Keep him or her informed. Whatever the boss wants, within the bounds of integrity, takes top priority.
17: Promises, schedules and estimates are important instruments in a well-run business. You must make promises — don't lean on the often-used phrase: "I can't estimate it because it depends on many uncertain factors."
18: Never direct a complaint to the top; a serious offense is to "cc" a person's boss on a copy of a complaint before the person has a chance to respond to the complaint.
19: When interacting with people outside the company, remember that you are always representing the company. Be especially careful of your commitments.
20: Cultivate the habit of boiling matters down to the simplest terms: the proverbial "elevator speech" is the best way.
21: Don't get excited in engineering emergencies: Keep your feet on the ground.
22: Cultivate the habit of making quick, clean-cut decisions.
23: When making decisions, the "pros" are much easier to deal with than the "cons." Your boss wants to see both.
24: Don't ever lose your sense of humor.
25: Have fun at what you do. It will be reflected in you work. No one likes a grump except another grump!
26: Treat the name of your company as if it were your own.
27: Beg for the bad news.
28: You remember 1/3 of what you read, 1/2 of what people tell you, but 100% of what you feel.
29: You can't polish a sneaker.
30: When facing issues or problems that are becoming drawn-out, "short them to the ground."
31: When faced with decisions, try to look at them as if you were one level up in the organization. Your perspective will change quickly.
32: A person who is nice to you but rude to the waiter, or to others, is not a nice person. (This rule never fails).
33: Never be afraid to try something new. Remember, an amateur built an ark that survived a flood while a large group of professionals built the Titanic!
Postscript: The qualities of leadership boil down to confidence, dedication, integrity and love.

How To Invest in the Indian Stock Market

The Indian Stock Market has giving spectacular returns in the past 12 months.[Its doubled in the past 24 months.]

Unfortunately, people who live in America or Canadia aren't allowed to invest directly in Indian Stocks. However there are a few Mutual Funds that are allowed to invest and through them we can join in the fun.

Morgan Stanley's India Investment Fund has doubled in the past year and pays a dividend of 7.30%.

The India Fund similarly doubled in the past year but had a dividend of 9.90%.

Since we're looking at foreign markets we might as well go the extra mile and look at Morgan Stanley's Eastern Europe Fund, which almost doubled but gave a dividend of 20%!!!!! Now thats a return I can live with.

Both of the India Funds have expense ratios of approx 1.5% and have Morning Star Ratings of 5 stars. Eastern Europe Fund has a higher expense ratio of 2.1% and a 4 star rating by Morning Star.